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Daily Review on Grain Market in China--4/26/2021

2021-04-26 www.cofeed.com

Today (Apr 26), the market for grains in China is shown as follows:

 

Corn:

 

China’s domestic corn prices keep unchanged with a slight adjustment in some regions today. And nationwide price is 2,832 CNY/tonne averagely, an increase of 3 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,780-3,020 CNY/tonne, a partial decline of 10 CNY/tonne from yesterday. At Jinzhou port, Liaoning, 2020 new corn (volume weight with 690-720 g/L, moisture content within 14.5%, impurity with 1%, dent with 8%, mildew with 2%) is purchased at 2,780-2,830 CNY/tonne, up 10 CNY/tonne from the low level. At Bayuquan port, Liaoning, the purchasing price of 2020 new corn (volume weight with 710-720 g/L, moisture content within 15%, impurity wijth 1%, mildew with 2%) is priced at 2,810-2,820 CNY/tonne, unchanged. At Guangdong port, Grade II corn price is priced at 2,920 CNY/tonne, flat from yesterday.

 

At the moment, farmers in Northeast China just hold few wet corn in hand. Some farmers are busy with spring plowing and thereby in no hurry to sell dry corn. Moreover, traders are reluctant to make sales and waiting for higher prices as their stocks are of high cost. Several deep-processing enterprises raise corn price by 20-70 CNY/tonne. Meanwhile, corn prices move higher bolstered by tight supply and further rise by 10 CNY/tonne at Southern ports. Nevertheless, some traders in North China tend to clear storage ahead of wheat harvest, so there are around 700 trucks waiting to get unloaded earlier this morning. Some enterprises cut corn price by 10 CNY/tonne. On the other hand, the demand from Southern market remains flat amidst the resurgence of African swine fever in some regions. Accordingly, pig farms look bearish on after-market and are active in slaughtering hogs, leading to a sluggish demand for corn. In addition, wheat, paddy and other substitutes for corn is competing for market share, which will continue cracking corn price down. Overall, China’s domestic corn prices are likely to fluctuate to go up before Labour Day holiday. But the upside of corn market is projected to be restricted due to bearish fundamentals. Market participants should keep close eyes on the pace of corn selling, arrivals of imported corn and relevant policies.

 

Sorghum:

 

Domestic sorghum prices are stable with a partial decline today, of which dried red sorghum is 4,000 CNY/tonne in Changchun, Jilin and down 100 to 3,700 CNY in Jinzhong, Jiangxi. Downstream buyers have limited acceptance of high sorghum prices, which is weighing down the market. Hence, domestic sorghum market is predicted to steady with an overall weak trend.

 

Imported sorghum prices steady in China today, of which raw U.S. sorghum is 2,490 CNY/tonne at Tianjin Port and 2,500 CNY at Guangdong ports; bulk raw Australian sorghum is 2,700 CNY at Tianjin Port. Huge sorghum arrivals at ports are weighing on prices, but as a substitute for corn, imported sorghum keeps firm under the support of high corn prices. Overall, imported sorghum prices are expected to steady with a weakening trend before huge cargoes arriving at ports.

 

Barley:

 

Imported barley prices are stable with a partial rise in China today, of which Canadian barley is 2,400 CNY at Guangdong ports, 2,350 CNY/tonne at Qingdao Port, and up 10 CNY to 2,300 CNY at Nantong Port. There are more imported barley cargoes expected to arrive at domestic ports, and some feed manufacturers are also making purchases. Overall, imported barley prices are predicted to steady with an overall weak trend in China.

 

(USD $1=CNY ¥6.49)